Policy incentives for flexible district heating in the Baltic countries

Daniel Møller Sneum*, Eli Sandberg, Hardi Koduvere, Ole Jess Olsen, Dagnija Blumberga

*Corresponding author for this work

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    This study analyzes the impacts of taxes, subsidies, and electricity transmission and distribution tariffs and heat storage on the operation and economic feasibility of district heating plants with different flexibility potentials in the Baltic countries. Under 2016 conditions, the lowest levelized cost of heat is achieved by a combination of wood chip boilers, electric boilers, and heat storage. Heat storage enables a higher utilization of least-cost technologies, resulting in greater cost efficiency for all considered scenarios. Current taxes and subsidies are found to have limited impact on the operation of combined heat and power plants and electric boilers.
    Original languageEnglish
    JournalUtilities Policy
    Volume51
    Pages (from-to)61-72
    ISSN0957-1787
    DOIs
    Publication statusPublished - 2018

    Keywords

    • District heating
    • Flexibility
    • Energy policy

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